1) The audit report summarizes the financial statements and position of ITC Ltd. for the fiscal year 2016-2017. It was submitted to Dr. Priyanka Vijaya and prepared by a team of 3 students. 2) ITC Ltd. is an Indian conglomerate based in Kolkata, with business segments including FMCG, hotels, paperboards, packaging, and agri-business. For 2016-2017, ITC's revenue was Rs. 60,493 crore and net income was Rs. 10,471 crore. 3) The auditor's report provides an unmodified opinion that ITC Ltd.'s financial statements fairly represent the company's position and performance and comply with applicable accounting

1. AUDIT REPORT
2016-2017
Submitted To:
Dr. Priyanka Vijaya
Faculty of Wisdom
Submitted By:
Dristy Gupta(12049)
Mahima Mahajan(12058)
Tripti(12085)
Course: B.B.A LL.B(VI Sem)
Sab Saath Badhein

2. INTRODUCTION
ITC was formed on 24 August 1910 under the name of Imperial Tobacco Company of India
Limited , and the company went public on 27 October 1954.
Established in 1910 as the Imperial Tobacco Company of India Limited, the company was
renamed as the Indian Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974.
ITC is an Indian conglomerate based in Kolkata, West Bengal.
Its diversified business includes five segments:
1) Fast-Moving Consumer Goods (FMCG);
2) Hotels;
3) Paperboards;
4) Packaging;
5) Agri Business & Information Technology.
The chairman of ITC is Y C Deveshwar. It’s revenue for the year March 31st 2017 is Rs. 60,493
crore and net income is Rs. 10,471 crore

4. MISSION
To enhance the wealth generating capability of the enterprise in a globalising environment,
delivering superior and sustainable stakeholder value.
VISION
Sustain ITC's position as one of India's most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company's stakeholders
PREAMBLE
ITC's Code of Conduct is derived from three interlinked fundamental principles, viz. good
corporate governance, good corporate citizenship and exemplary personal conduct.

5. PRODUCT MIX

6. INDEPENDENT AUDITOR REPORT
AUDIT COMMITTEE:
1)S B Mathur ---------------------- Chairman
2)Z Alam -----------------------------Member
3)A Duggal --------------------------Member
4)P B Ramanujam-------------------Member
5)S H Rehman ---------------------Member
6)R Tandon ---------------------------Invitee
7)R Parasuram ----------------------Invitee (Head of Internal Audit)
Representative of Invitee the Statutory Auditors
8)B B Chatterjee---------------------Secretary
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ITC LIMITED (“the
Company”), which comprise the Balance Sheet as at 31st March, 2017, and the Statement of
Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the
Statement of Changes in Equity for the year then ended, and a summary of the significant
accounting policies and other explanatory information.

7. Management’s Responsibility for the Standalone Financial Statements:
1) The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of
the Companies Act, 2013.
2) This responsibility also includes :
• maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company
• Preventing detecting frauds and other irregularities
• Selection and application of appropriate accounting policies;
• Making judgments and estimates that are reasonable and prudent;
• Design, implementation and maintenance of adequate internal financial controls,
• Operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone Indian AS financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility:
1) Our responsibility is to express an opinion on these standalone Indian AS financial statements
based on our audit.
2) We conducted our audit of the standalone Indian AS financial statements in accordance with
the Standards on Auditing specified under Section 143(10) of the Act.

8. 3)The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the standalone Indian AS financial statements, whether due to
fraud or error.
4) An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the standalone Indian AS financial statements.
5) In making those risk assessments, the auditor considers internal financial control relevant to
the Company’s preparation of the standalone Indian AS financial statements that give a true and
fair view in order to design audit procedures that are appropriate in the circumstances.
6) We believe that the audit evidence obtained by us is sufficient and appropriate to provide a
basis for our audit opinion on the standalone Indian AS financial statements.
Opinion
1) In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid standalone Indian AS financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at 31st March,
2017, and its profit, total comprehensive income, its cash flows and the changes in equity for
the year ended on that date.

9. AWARDS FOR ITS CSR
1) ITC ranked as the most admired company in India in 2014.
2) ITC won the prestigious porter prize 2017 for “ Excellence in Corporate Governance and
Integration” and for its exemplary contribution in “ Creating Shared Value”.
3) AIM Asian CSR award by the Asian Forum on corporate social responsibility.
4) Rain Forest Alliance awarded ITC’s Bhadrachalam Unit, the Forest Stewardship Council
Forest Management Certification.

10. CONCLUSION
1) The Company has maintained proper records showing full particulars, including quantitative
details and situation of property, plant and equipment.
2)The property, plant and equipment were physically verified during the year by the Management
in accordance with a regular programme of verification which, in our opinion, provides for
physical verification of all the property, plant and equipment at reasonable intervals. According to
the information and explanations given to us, no material discrepancies were noticed on such
verification.
3) With respect to immovable properties of acquired land and buildings that are freehold,
according to the information and explanations given to us and the records examined by us and
based on the examination of the registered sale deed / transfer deed / conveyance deed / court
orders approving schemes of arrangements/amalgamations provided to us, the title deeds of such
immovable properties are held in the name of the Company as at the balance sheet date.
4)The Company has not granted any loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or other parties covered in the Register maintained under Section 189 of
the Companies Act, 2013.

11. 5) In our opinion and according to the information and explanations given to us, the Company
has complied with the provisions of Sec 185 and 186 of the Companies Act, 2013 in respect of
grant of loans, making investments and providing guarantees and securities, as applicable.
6) To the best of our knowledge and according to the information and explanations given to us,
no fraud by the Company and no material fraud on the Company by its officers or employees has
been noticed or reported during the year.
7) In our opinion and according to the information and explanations given to us, the Company
has not defaulted in the repayment of loans or borrowings to financial institutions, banks and
government and dues to debenture holders.